Legal AF by MeidasTouch

Episode: Judge Excoriates Trump in Open Court for Fed Claim

Date: January 1, 2026
Host: Michael Popok (MeidasTouch Network)

Overview

In this episode of Legal AF, host Michael Popok dives deep into a major federal court order rebuking the Trump administration for its attempt to defund the Consumer Financial Protection Bureau (CFPB) by claiming the Federal Reserve is "busted" and cannot provide the mandated funding. The episode explains the background, the Trump administration's strategies, and the stern response from Judge Amy Berman Jackson. Popok emphasizes the broader context of the Trump team’s efforts to undermine regulatory agencies and the legal pushback keeping critical consumer protections intact.

Key Discussion Points & Insights

1. Background: The Attack on the CFPB

• Historical context: Since its creation by President Obama, the CFPB has been a top target for MAGA and the Trump administration, along with Obamacare ([03:00]).
• Why CFPB matters: Popok frames it as the last major firewall preventing abuse in consumer finance, with other regulatory agencies already weakened through Trump-era defunding and deregulatory efforts.

2. Judge Amy Berman Jackson’s Order

• Immediate trigger: The Trump administration claimed it could not continue funding the CFPB due to the Federal Reserve’s alleged lack of “earnings”—essentially stating the Fed was out of money ([02:28]).
• Judicial context: Judge Jackson had issued an injunction preventing any move to dismantle or defund the CFPB while its fate was still on appeal.

3. The Manufactured Crisis

• Russ Vought’s role: As head of OMB and key architect of Trump’s Project 2025, Vought is highlighted as the central figure orchestrating funding sabotage. Popok frequently refers to him as "Darth Vader," echoing Trump’s own playful-yet-serious introduction ([07:30-08:52]).
  • Notable quote – Donald Trump introducing Russ Vought:
    "They call him Darth Vader. I call him a fine man, but he's cutting Democrat priorities and they're never going to get him back." ([08:18])
• Media tactics: Right-wing podcasts amplified the narrative that defunding the CFPB was both imminent and desirable ([08:52]).

4. Judge’s Rebuttal & Ruling

• Key evidence: Judge Jackson inserts direct transcripts from right-wing podcasts and Trump's own public statements to show intent ([09:00-09:33]).
• Re: Legal strategy:
  • The administration’s claim hinged on a memo from the Trump DOJ’s Office of Legal Counsel redefining the Federal Reserve’s "profitability" and thus its funding obligations ([10:50]).
  • Judge Jackson relies on a brief from former Federal Reserve officials debunking the DOJ’s analysis:
    "The Fed never truly operates at a loss." ([11:20])
• Ruling summary:
  • The court finds the supposed funding shortfall is “manufactured” to evade compliance ([13:15]).
  • Rejects the administration’s legal arguments as “an unsupported and transparent attempt to starve the Bureau of Funding and yet another attempt to achieve the very end the court's injunction was put in place to prevent.”
    • Notable quote – Judge Jackson:
      “The only new circumstance is the administration’s determination to eliminate an agency created by Congress with the stroke of a pen. Even while the matter is before the court of Appeals.” ([14:40])
  • Clarifies that refusal to request funds constitutes a violation of her injunction.

5. The Trump Playbook: Delay, Obfuscate, Undermine

• Judges repeatedly forced to clarify orders due to Trump DOJ’s willful misreadings and delay tactics ([15:30]).
• Popok:
  “It's into the multiple dozens. How many times judges are forced to re, clarify, reissue, reconsider their orders for this Trump administration … They act like they can't read. They act like they don't understand plain English.” ([15:45])

6. Broader Impact & Reflections

• Government shrinkage myths: Trump’s cuts to federal workforce haven't reduced spending—in fact, Popok says spending is up 7% under Trump despite the chaos ([16:35]).
• Importance of legal guardrails: The courts remain essential in preserving agencies (like the CFPB) during periods of political targeting ([18:00]).

Notable Quotes & Memorable Moments

• Popok on the absurdity of the Fed's ‘bankruptcy’ claim:
  “Pull out its pockets and say we'd love to comply, your honor, but the Fed doesn't have the money to pay for the agency as Congress has required. What are we to do?” ([02:28])
• Judge Amy Berman Jackson (quoted by Popok):
  "This ‘manufactured’ [funding crisis] is not a valid justification for the agency's unilateral decision to abandon its obligations under the injunction.” ([13:15])
• On repeated judicial clarifications:
  “Judges have to clarify a lot with this administration ... buying more time for the Trump administration, wasting more time, wasting more dollars.” ([15:45])
• Popok’s overview of the Trump move:
  “The administration’s determination to eliminate an agency created by Congress with the stroke of a pen. Even while the matter is before the court of Appeals.” ([14:40])
• Russ Vought’s ‘Darth Vader’ status:
  "Don't be misled by his bookish librarian demeanor—you know, he is Darth Vader. That's what Donald Trump has even called him." ([07:10])

Important Segments & Timestamps

• [02:28] — Introduction to Judge Jackson’s latest order and summary of the case against the Trump administration.
• [03:00] — Background on CFPB and Trump's campaign to dismantle Obama-era regulatory protections.
• [07:30-08:18] — Discussion of Russ Vought, “Darth Vader” analogy, and his central role in Project 2025 and agency defunding.
• [09:00-09:33] — Right-wing media and administration statements about defunding the CFPB, with Judge Jackson quoting these statements in her order.
• [10:50-11:20] — The dubious DOJ memo and the counter from former Federal Reserve officials.
• [13:15] — Judge Jackson’s key findings: rejecting the funding excuse and reaffirming her injunction.
• [14:40] — The court’s frustration with repeated attempts to sidestep judicial oversight.
• [15:45-16:35] — On delay tactics and the paradox of increased federal spending under Trump.

Tone and Language

• The episode preserves Popok’s mix of legal acumen and direct, often wry commentary. He reliably attributes direct quotes and injects quips (“Darth Vader”, “the lights are on, nobody’s home”).
• The legal explanations are accessible, drawing connections between administrative maneuvers and their real-world impact on consumers.

Conclusion

This episode illustrates both the technical legal arguing and broader stakes at play as the Trump administration attempts to hollow out consumer protections. Judge Amy Berman Jackson’s forceful order highlights judicial vigilance in the face of executive overreach and manufactured crises. Popok’s analysis deciphers complex maneuvers for listeners, reinforcing the importance of both legal guardrails and informed advocacy.

“The only new circumstance is the administration’s determination to eliminate an agency created by Congress with the stroke of a pen. Even while the matter is before the court of Appeals.” — Judge Amy Berman Jackson ([14:40])